The Canadian Grain Commission is taking a closer look at containerized grain to determine if container packing facilities should require a CGC license.
Commissioner Murdoch MacKay said containerized grain is one of the items being discussed in a review of CGC services.
The volume of grain shipped in containers has increased over the past decade and is likely to see further expansion when the CWB loses its export monopoly over wheat and barley Aug. 1, MacKay said.
The Canada Grain Act stipulates that grain dealers, primary elevators, process elevators, transfer elevators and terminal elevators require a CGC license to conduct business.
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However, container packing facilities do not require a license.
“Container traffic has increased significantly, and there is a lot of grain that is being exported by containers,” MacKay said.
“Container loading facilities aren’t even mentioned in the Canada Grains Act right now … (so) maybe this is something we have to look at.”
The commission is currently reviewing its operations and is preparing a list of recommended changes to the Canada Grain Act.
Those recommendations will be submitted to the federal government later this year.
If implemented by Ottawa, they could lead to changes in licensing, governance, bonding requirements and inspection and weighing services.
The commission has already consulted with producer groups and the grain industry to determine what changes they would like to see.
The CGC will likely emerge from the review process as a leaner organization that has fewer employees, offers fewer services and requires less government money to carry out its mandate.
A greater proportion of the commission’s annual operating budget is likely to be collected through user fees.
Other changes being considered include:
- the introduction of a new, more efficient governance structure within the commission
- potential changes to current bonding provisions that ensure the financial viability of CGC licensees
- the adoption of new and improved dispute resolution mechanisms
- the elimination of inward inspection and weighing services on shipments of grain that move domestically within Canada
Inward inspection has been identified as a service that is likely to be dropped from the commission’s mandate.
MacKay said the CGC will continue to inspect and weigh outbound grain shipments that are destined for overseas markets, but not necessarily grain that is shipped within Canada.
